In finance, a borrower is the party in a loan agreement which receives money from a lender and promises to repay the lender in a specified time referred to as a loan period. A borrower may pay off the loan at any time during the loan period. Typically, if the borrower would like to know the amount needed to pay off the loan on a particular date, the borrower must telephone the lender and speak with a representative of the lender. The representative requests information from the borrower, performs a calculation, and provides the borrower with the payoff amount referred to as a loan payoff quote. This is time consuming for the borrower and the representative and is prone to error.
Some lenders provide loan payoff quotes electronically to a borrower, e.g., via a website, for fixed payoff times, such as 10 days or 30 days in the future. However, lenders do not provide a loan payoff quote online for a borrower-selectable specific number of days. Thus, a precise loan payoff quote for a borrower-selected payoff date cannot be provided online to a borrower, and as a result, a borrower often overpays or underpays when paying off a loan on a borrower-selected payoff date.